Free New Mexico Real Estate Salesperson Practice Exam 2025

New Mexico Real Estate Practice Exam

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1. What is the highest fine the NMREC can impose for a single violation?

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2. How many days does a licensee have to report a misdemeanor conviction to NMREC?

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3. What property management function requires a real estate license if done for multiple owners?

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4. What happens if a licensee fails to complete required CE hours on time in New Mexico?

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5. How frequently must NM real estate licenses be renewed?

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6. What process must a brokerage follow to change its qualifying broker in NM?

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7. What is the goal of the Uniform Owner-Resident Relations Act in New Mexico?

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8. Which details are mandatory in real estate advertising by New Mexico licensees?

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9. Which IRS form is used to report real estate transactions in New Mexico for tax purposes?

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10. When is a licensee required to provide the Broker Duties Disclosure to a prospective client?

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11. In which of the following situations is written agency disclosure required?

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12. What is the main role of the New Mexico Real Estate Commission?

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13. When is a licensee required to disclose their license status in a real estate transaction?

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14. Which of these scenarios best illustrates commingling in the context of real estate?

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15. How long are brokers in New Mexico required to retain transaction records?

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16. Which organization is tasked with enforcing real estate license laws in New Mexico?

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17. Which activity requires a real estate license under New Mexico law?

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18. Within how many business days must earnest money be deposited into a trust account in New Mexico?

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19. Which statement accurately reflects trust account requirements in NM real estate practices?

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20. How many continuing education hours are required every three years to renew a real estate license in NM?

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21. Which of the following is not protected under either the NM Fair Housing or federal Fair Housing laws?

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22. What is the minimum annual aggregate coverage required for Errors and Omissions insurance in New Mexico?

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23. After how many days do changes to the NM Real Estate License Law become effective once adopted?

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24. Which protection category is recognized under New Mexico Human Rights Act but not under the federal Fair Housing Act?

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25. What legal consequences can an unlicensed individual face for violating New Mexico real estate license laws?

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26. How are commission fees determined in New Mexico real estate transactions?

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27. A borrower applies for a loan of $180,000 to purchase a home worth $240,000. What is the loan-to-value ratio?

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28. What is the required maximum balance for the New Mexico Real Estate Recovery Fund?

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29. Who must comply with New Mexico Fair Housing laws?

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30. Which activity is allowed for an unlicensed real estate assistant?

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31. Is it legal to commingle client and personal funds in New Mexico real estate practice?

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32. Under the New Mexico Uniform Owner-Resident Relations Act, how many days does a tenant have to correct a lease violation?

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33. Who contributes to the funding of the New Mexico Real Estate Recovery Fund?

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34. Which of the following contracts is legally unenforceable?

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35. How many continuing education hours are required for license renewal in New Mexico?

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36. Who appoints members to the New Mexico Real Estate Commission?

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37. How many days do individuals have to file complaints of license law violations in New Mexico?

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38. By when must New Mexico licensees report disciplinary actions taken in another state?

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39. A buyer makes an offer contingent on selling their current home within 30 days. What happens if the buyer does not sell their home in time?

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40. Which protected class is recognized by the New Mexico Human Rights Act but not the federal Fair Housing Act?

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41. Does New Mexico have license reciprocity with other states?

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42. How long do members of the New Mexico Real Estate Commission serve?

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43. What penalty can a licensee face for violating license law in New Mexico?

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44. After personal information changes, how many days do licensees have to notify the Commission?

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45. What is the maximum deductible allowed for E&O insurance per claim in New Mexico?

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46. How long must transaction records be retained under New Mexico real estate law?

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47. The seller paid the annual property tax of $3,600 on January 1. The sale closes on September 30. How much will the buyer owe the seller for prorated taxes?

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48. A property is sold for $285,000. The listing broker charges a 5% commission and agrees to split it 60/40 with the buyer’s agent. How much does the buyer’s agent receive?

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49. Under New Mexico agency law, when is dual agency considered legal?

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50. How many members of the New Mexico Real Estate Commission must be licensed brokers?

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This practice test is designed to help you prepare for the New Mexico Real Estate Salesperson exam in 2025. On this page, you’ll find a 125-question practice exam, a detailed review of the exam topics, up-to-date eligibility criteria, the latest laws, and essential preparation tips. Start the Real Estate Salesperson Practice Exam below to assess your knowledge.

Who is eligible to take the New Mexico Real Estate Salesperson license exam?

To qualify for the New Mexico Salesperson license exam, candidates must meet specific educational, legal, and procedural requirements:

  • Complete the official application form (available on the 11th page of the New Mexico Real Estate Commission packet) and mail it to the Commission office.
  • Finish three 30-hour pre-licensing courses: Real Estate Principles and Practice, Real Estate Law, and Broker Basics.
  • Be at least 18 years of age.
  • Hold legal residency in the United States.
  • Submit the Fingerprint Certification Form and two fingerprint cards to the New Mexico Department of Public Safety (processing fee: $44).
  • Provide a certificate of insurance showing current errors and omissions insurance coverage.
  • Complete a 30-hour New Broker Business Practices course within one year after license issuance.
a man is prepping for the exam day by doing several New Mexico real estate practices

What’s on the New Mexico Real Estate Salesperson exam?

The New Mexico Real Estate Salesperson exam consists of 125 multiple-choice questions, 75 on the national portion and 50 on the state-specific portion. Topics include property ownership, agency, contracts, math calculations, New Mexico license law, brokerage relationships, and required disclosures.

New Mexico Real Estate exam topics

The table below are major licensing topics you’ll need to study:

National Portion

TopicSubtopicsNumber of Questions (approx.)
Property OwnershipTypes of ownership, rights, interests8
Land Use Controls & RegulationsPublic/private controls4
Valuation & Market AnalysisAppraisal, pricing, market conditions5
FinancingLoans, mortgages, lending laws6
General Principles of AgencyAgency relationships, fiduciary duties8
Property DisclosuresHazard, environmental, other disclosures5
ContractsListing, sales, leases, offers13
Leasing & Property ManagementProperty management, lease types4
Transfer of TitleDeeds, title transfer, recording5
Practice of Real EstateFair housing, ethics, antitrust10
Real Estate CalculationsMath for transactions, valuation6

State Portion

TopicNumber of Questions
Real Estate Commission6
Licensing Requirements7
Real Estate Commission Regulations15
Broker Duties, Disclosure & Relationships15
Additional State-Required Topics7

What is the exam passing score?

The passing score for the New Mexico Salesperson exam is 75% for both the national and state sections. You must correctly answer at least 60 questions on the national portion and 38 questions on the state-specific portion. Your score will be displayed immediately after you complete the test, and a printed report is available at the test center.

What 2025 New Mexico Real Estate Laws Should You Know for the Salesperson Exam?

In 2025, New Mexico continues to require sellers to complete the state-mandated seller’s property disclosure form, with enhanced responsibilities to update it if new information emerges. Additionally, wholesaling remains legal under state rules, though it requires strict compliance with licensing requirements to avoid violations. These items are integral to the state-specific section of the salesperson exam, particularly under property disclosures and licensing law.

Below is a summary of the key 2025 laws:

Name of Law or RuleBrief Description2025 StatusExam Relevance 
Seller’s Property Disclosure – ResidentialSellers must fully disclose known property conditions and update as needed during sale.No new changes for 2025, but the requirement remains strong with emphasis on updates.Property Disclosures, Consumer Protection
Legal Status of Real Estate WholesalingWholesaling—contract assignment for profit—is legal but must comply with licensure laws.Confirmed legal in April 2025; sellers must not violate unlicensed practice regulations .Licensing Law, Ethical Boundaries
Continuing Education Core Course (NMREC)Brokers must complete education covering duties, disclosures, and legal updates.2025 CE includes legal updates and disclosures under core curriculum .Indirect – Relevant for ongoing compliance
Brokerage Licensing & Reciprocity RulesSets educational hours, exam, licensing, and experience requirements.No substantive changes in 2025; rules on 90-hour pre-licensing and reciprocity remain .Licensing Requirements, Broker Duties

How to prepare for the exam?

Improving your pass rate depends on understanding exam details, using trusted resources, reviewing key topics, and following a targeted study plan for New Mexico licensing.

Understanding New Mexico Salesperson exam details

New Mexico Real Estate exam structure and requirements is essential for effective preparation. Here is information you need to know:

  • Time allotted: 3 hours total (2 hours for national, 1 hour for state)
  • Exam format: Computer-based
  • Exam fee: $95
  • Licensing authority: PSI
  • Where to take the exam: Albuquerque, Farmington, Las Cruces, Roswell, Santa Fe

Learning from prep resources

Use trusted study guides and platforms that align with New Mexico’s exam outline. Quality resources include:

Prep books

  • New Mexico Real Estate License Exam Prep: All-in-One Review and Testing to Pass New Mexico’s PSI Exam by Stephen Mettling, David Cusic, and Ryan Mettling: A comprehensive guide including New Mexico-specific law reviews
  • Principles of Real Estate Practice in New Mexico by Stephen Mettling and David Cusic: A foundational textbook adopted by New Mexico real estate schools, covering all required state-specific topics, licensing laws, national principles, agency, contracts, property ownership, and more.

Free practice test platforms 

  • Realtylicenseprep practice tests: offer national and 50-state exam simulations that mirror real test conditions and question types. 

Other resources

  • Video tutorials: explain complex topics step-by-step. 
  • Flashcards: effective for memorizing key terms and legal definitions.
  • Joining a study group: provides discussion-based learning.

Follow study strategy

A structured study plan improves content retention and builds confidence under real exam timing. You can begin with core topics, then refine your approach based on past performance. The table below is a sample of 8‑week study plan:

WeekFocusActivities
1 – 2Ownership & agencyRead outline, watch topic videos, flashcards
3 – 4Valuation, financing, contractsPractice questions + review wrong answers
5Disclosures & ethicsDeep dive into cases & laws
6Practice examsTimed mock tests
7Review weak areasRe-study low-scoring sections
8Final exam simulationFull test practice under timed conditions

Weak area analysis

  • Review your score breakdown weekly.
  • Focus additional study on areas below 70%.
  • Review incorrect answers to understand mistakes deeply.

Mastering Real Estate math

There will be math questions in the New Mexico Real Estate Salesperson exam. These questions are found in the national portion and typically focus on three area basic math concepts, calculations for transactions, calculations for valuation.

Since math questions can affect your result, focused practice is essential after reviewing the main topics. To prepare:

  • Review formulas for commission, loan-to-value ratio, and property tax calculations.
  • Solve sample problems with our practice tests.
  • Use flashcards or guided quizzes to reinforce conversions and amortization steps. 

Frequently Asked Questions

What’s the best way to practice and memorize for the New Mexico real estate exam?

Use Quizlet flashcards + YouTube videos to drill questions until you consistently score above 90%. You need to focus on NM-specific topics like Commission rules and Licensing Regulations in addition to national concepts. And drill questions until you consistently score high.

How tricky are the New Mexico exam questions?

Practice scenario-based questions, watch out for qualifiers like “except,” and learn why each answer is right or wrong.

What are effective New Mexico test-taking techniques?

Since New Mexico’s exam includes real estate math, write down formulas at the start, tackle math/law questions early, then circle back to ensure full coverage.

How should I pace my exam approach?

Use a two-pass method: quickly answer confident questions, flag the rest, then review flagged items. Take your time to read carefully, eliminate wrong choices, and ensure math accuracy.

How do I overcome test anxiety and second-guessing?

Label questions based on confidence (A – sure, B – unsure, C – math), complete the A group first, skip B and C, then return for review. Look for clues in later questions, you may find hidden answers.

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